HC Deb 21 December 1971 vol 828 cc296-7W
Mr. Redmond

asked the Chancellor of the Exchequer whether he is aware, in view of the income tax rates being paid by old people who may be in receipt of more than one pension, of their difficulties over income tax payments; and whether he will introduce arrangements to ensure that income tax can be deducted at source or regularly collected by members of his staff.

Mr. Patrick Jenkin

Where it is not possible for tax on pensions to be collected through P.A.Y.E., the system already provides for payment to be made in four equal instalments at regular intervals.

Mr. Stallard

asked the Chancellor of the Exchequer if he will introduce legislation substantially to increase the amount of earnings allowed to retirement pensioners, still working, before becoming liable to tax.

Mr. Patrick Jenkin

I assume the hon. Member is referring to the income tax age exemption which exempts from tax elderly people whose total income does not exceed certain limits. This year's Finance Act made an increase in these limits for the current tax year and a further increase for next year, as in the table below. I have noted his suggestion that the limits should be further raised.

1970–71 1971–72 1972–73
Single 475 504 530
Married 740 786 825

Mr. Stallard

asked the Chancellor of the Exchequer if he will introduce legislation to abolish the deduction of income tax from retirement pensioners still at work at 65 years of age instead of 70 years of age as at present.

Mr. Patrick Jenkin

There is no special income tax exemption for the earnings of pensioners aged 70 or over. Under present law, however, elderly people aged 65 or over are exempted from tax if their total income, including earnings, does not exceed certain limits.